NS&I Index Linked Certs closed for new applications

guitarman001

Jesus!! This is pretty bad - another blow to the saver.
I got my savings certificate just last week, so JUST got in there.
Seems I can roll over (extend once more) when my term is up according to the press release.

Question:
I have just £11k in these - can I add more money by ringing them up? I assume so..

I wonder if the government expect massive inflation and want to limit the outgoings..

DiggerUK

guitarman001 wrote: »

..........
Question:
I have just £11k in these - can I add more money by ringing them up?.......

No you can't.

And yes, it looks like inflation is going to be let rip.

fairtrade

guitarman001 wrote: »

I wonder if the government expect massive inflation and want to limit the outgoings..

When they put up V.A.T. there is sure to be a jump in the inflation rate.

le_loup

This is a bad blow.
I hope that previous posters are right in that there will be a new issue tracking CPI because even that would be better than nothing. They would have to change their T&Cs considerably to do so and, after opinions from lawyers, could take some time.
What surprises me, is that they have withdrawn quite a number of products recently at a time where government borrowing is high! Where are they borrowing from if it's not us?

guitarman001

Tell you what's going to happen. Housing is going to be included more into the figures - and when it tanks (as it will, I believe) - this will counter the real rise in inflation.
Hell if housing had properly been accounted for we would have had hyperinflation years ago.

Sceptic001

guitarman001 wrote: »

Tell you what's going to happen. Housing is going to be included more into the figures - and when it tanks (as it will, I believe) - this will counter the real rise in inflation.
Hell if housing had properly been accounted for we would have had hyperinflation years ago.

It depends what you mean by "Housing".

RPI includes mortgage interest costs (which accounted for the brief period of negative RPI increases in 2009), council tax and rent costs. I am pretty certain (but can find no definitive source) that house prices are not included. There would be no justification for inclusion because house prices are a capital cost.

With base rates at 0.5% there is no downside for mortgage interest. The government has allegedly frozen council tax for next year (again sources are scarce), which should cause a small fall in RPI next April. Rents could go either way.

StevieJ

Sceptic001 wrote: »

It depends what you mean by "Housing".

RPI includes mortgage interest costs (which accounted for the brief period of negative RPI increases in 2009), council tax and rent costs. I am pretty certain (but can find no definitive source) that house prices are not included. There would be no justification for inclusion because house prices are a capital cost.

With base rates at 0.5% there is no downside for mortgage interest. The government has allegedly frozen council tax for next year (again sources are scarce), which should cause a small fall in RPI next April. Rents could go either way.

It seems to me that the Govt are getting out of RPI while base rates are right at the bottom and can only go one way, presumably pushing up mortgage interest costs. I am pretty sure house prices are not included.

grubby23

I applied online for mine last week, and money was deduced from my account. So I assume they must honour my application, although I have not received any certificate yet.

Is it possible they change the inflation index from RPI to CPI for existing ones, or is this only possible for new issued certificates.

Cheers,
P

lisyloo

No not for existing ones.
We have a legal contract.

welshmoneylover

I'm so glad I bought mine last Thursday :j money has gone from my bank account so just waiting for the paperwork to arrive.

I've never know these to not be on sale, wish I'd bought more now :mad: